24
The Secrets of Better Billing UK WATER

Aptumo | The Secrets of Better Billing UK · Customers should be able to fully understand their water bill so they are aware of how much they have to pay and when. However, our findings

  • Upload
    others

  • View
    1

  • Download
    0

Embed Size (px)

Citation preview

Page 1: Aptumo | The Secrets of Better Billing UK · Customers should be able to fully understand their water bill so they are aware of how much they have to pay and when. However, our findings

The Secrets of

Better BillingUK WATER

Page 2: Aptumo | The Secrets of Better Billing UK · Customers should be able to fully understand their water bill so they are aware of how much they have to pay and when. However, our findings

For water companies, billing is a vital customer touchpoint. At their core, bills must be clear, correct and

concise, and any issues rapidly resolved. This will help to drive satisfaction and reputation of the company

amongst its customers.

But, with water customers often only billed once per year, and contact outside of this limited, the bill and

associated communication are also a potential conduit to engage with customers about the issues they

personally find important.

This report builds on our previous research on the subject of billing. It outlines the findings of a nationally-

representative survey of 1,000 UK households looking at how consumers feel about the water bills they are

presented with, the prevalence of good and bad practice and whether they feel there is additional help there for

them should they need it.

We will also consider the innovative digitisation that must take place if the water industry is to answer the

regulatory expectations set out for AMP 7 and beyond as Ofwat begins to lay out its emerging future strategy.

Foreword

Research by Aptumo 2019

Andy MackSoftware Services Director, Echo Managed Services

2

Page 3: Aptumo | The Secrets of Better Billing UK · Customers should be able to fully understand their water bill so they are aware of how much they have to pay and when. However, our findings

Digital billing uptake lags behind

Conventional paper billing is still prominent in the UK water sector, with over half (55%) of customers receiving

statements in this way. Digital billing via email (25%) and online supplier portals (20%) are still relatively low in

comparison to other essential services sectors such as energy, where digitisation of billing is more commonplace.

Incentives such as e-billing tariff reductions, together with higher engagement levels as a result of switching, may

have driven more customers to choose e-billing in the energy sector. Water companies don’t incentivise e-billing in

the same way and, for many customers, the infrequency of contact with their supplier may mean it’s not even on the

radar.

Of course, some water customers may want to continue to receive a paper bill. Indeed, only a very small proportion of

respondents believe their supplier is old-fashioned in how they handle billing; less than 5% of billpayers said they

thought their supplier could offer more modern ways to handle bills.

What’s clear is that a “one-size-fits-all” billing solution goes against the personalised service customers increasingly

expect; customers should be able to receive their water bill in a way that suits them, according to their own choices

and circumstances. However, there is a clear opportunity to further digitise the billing journey, so long as consumers

are happy to make the change.

Water companies should ensure they have the right tools and solutions in place to support them to become more

digitally enabled, and that the customer journey is well designed and thought out to suit different customer segments

to provide the ease and convenience that e-billing sets out to achieve.

Thinking of your water bill, which of the following

statements is most accurate for you? (select one)

I receive a paper bill

I receive a digital bill via email

25%

55%

Research by Aptumo 2019

I access my digital bill via

my online supplier account page

20%

3

25%

38%

37%

water energy

Page 4: Aptumo | The Secrets of Better Billing UK · Customers should be able to fully understand their water bill so they are aware of how much they have to pay and when. However, our findings

An important customer touchpoint

The nature of the water sector means that, unless issues arise, contact with customers can be infrequent. Indeed, as we’ll

see later, 82% of customers have had no need to contact their supplier in the past 12 months.

Current customer touchpoints such as bills are therefore important to connect with customers and convey relevant

messaging in a simple, engaging way.

However, our results show that bill information isn’t reaching many customers. Only 48% of customers told us they actually

read their water bill thoroughly, with 12% saying they ignore it altogether. Maybe they have no interest, are too busy, find

bills disengaging, or simply trust their supplier to get it right.

The findings also highlighted that those customers most likely to receive their bills via paper are also the ones that check

their bills most thoroughly. This mirrors our previous research that found that online billing leads to many customers

becoming more distant from the bills they receive – a case of “invisible bills.”

Engaging consumers around bill design, format and content can help water companies to better understand how customers

currently engage with bills and what would help make bills more clear and informative. Some great work is already being

done on this across the sector, and it will be interesting to see the effect this has on engagement with water bills over time.

Clearly, there’s unlikely to be one design that suits everybody, considering different degrees of personalisation to better

meet individual needs could be a positive step forward. Investing in innovative billing software can open up new possibilities

to do this in a cost-effective way.

Research by Aptumo 2019

Thinking of your water bill, which of the following

statements is most accurate for you?(select one)

I read my bill

thoroughly

I scan my bill I don’t look at

my bill

40%

12%

48%

0%

10%

20%

30%

40%

50%

4

Page 5: Aptumo | The Secrets of Better Billing UK · Customers should be able to fully understand their water bill so they are aware of how much they have to pay and when. However, our findings

When it comes to understanding your water bill, which

of the following apply? (select all that apply)

I find my bills

easy to

understand

I think my supplier

makes an effort to

ensure my bills are

simple to

understand

I find my

supplier uses

jargon in my bill

which confuses

me

39%

14%

51%

0%

10%

20%

30%

40%

50%

60%

Research by Aptumo 2019

Bills are not universally understood

Bill clarity is an important element of good customer service, and billing continues to be a focus

measurement area as the sector transitions from SIM to C-MeX (customer measure of experience).

Customers should be able to fully understand their water bill so they are aware of how much they have to

pay and when.

However, our findings highlight that only 51% of billpayers find their bills easy to understand, suggesting

that the remainder find their bill confusing in some way – or perhaps do not understand it at all.

This may be due in part to the terminology used by water suppliers when communicating with customers

- one in seven (14%) billpayers believe that their supplier uses confusing jargon in their bill. Concerningly

for water companies, only 39% of customers think their supplier is trying to connect with them in a clear

and simple way. This may negatively affect brand perception, with some customers potentially feeling

alienated by their supplier.

It’s important that bills, as with all aspects of customer service, are inclusive – which means a degree of

tailoring to support those with specific needs. Providing easy ways to find out more if customers don’t

understand and clear-cut explanations and information on a well-designed and easy to navigate website

can help, alongside signposting to a helpful and knowledgeable customer service team.

5

Page 6: Aptumo | The Secrets of Better Billing UK · Customers should be able to fully understand their water bill so they are aware of how much they have to pay and when. However, our findings

Changes can be impactful

Boosting bill clarity through design is something that many suppliers have focused on in recent

times and our survey shows that, in some cases, this is having an impact. Although over half of

billpayers haven’t recalled a noticeable difference in their bills, a fifth do state that they feel it is

clearer to read and 17% feel it is easier to understand.

Given that many water customers only receive a bill once per year, it’s encouraging that the work

done to date has already begun to deliver visible results. The results indicate that bill design can

positively impact on understanding. But there is still room to do more in this respect.

Inclusivity is also a key consideration in terms of bill design. Bills are a key engagement point for

all consumers including those with additional needs or who are in vulnerable circumstances. It’s

important that water companies consider all customers when designing bills and communications,

taking care not to disadvantage customers with specific needs, for example those with colour

vision deficiency or who are poor sighted.

Research by Aptumo 2019

Have you noticed a change in the look and/or feel of

your bill in the last 12 months? (select all that apply)

Yes, it is

clearer to read

20%

Yes, the

design has

been refreshed

10%

Yes, it is

easier to

understand

17%

0%

10%

20%

30%

40%

50%

60%

4%

Yes, the type

of information

provided has

changed

No

56%

6

Page 7: Aptumo | The Secrets of Better Billing UK · Customers should be able to fully understand their water bill so they are aware of how much they have to pay and when. However, our findings

Billing frequency – more is more

Our figures highlight a range of views when it comes to how frequently water consumers wish to receive

a bill statement. However, the majority of people (79%) lean towards more frequent statements than the

current annual frequency for most customers.

Around a third of those surveyed (31%) told us that they would prefer to receive a bill statement on a

quarterly basis, with 28% saying they would like to see a more frequent, lower statement every month.

Only one in five people stated that annual billing was their preference.

Introducing more frequent statements would clearly have cost implications. However, tying this to e-bills

could be one way to mitigate this. It could also bring additional benefits, with smaller bills being perceived

as more affordable for those customers in financial hardship or difficult circumstances. Could this

potentially drive more of these customers to make a payment rather than ignore their bill, and through

this reduce debt levels?

As with many aspects of customer experience, customers have a mix of opinions when it comes to how

frequently they receive their water bill statement. Offering frequency choice to customers can support

water companies in meeting the varying preferences of different customers, ultimately driving a more

personalised and tailored experience.

Thinking about your water bill, how often would you

prefer to receive a bill? (select one)

Every Month

28%

Once per year

21%365

Quarterly (every 3 months)

31%

No, my bill is not

tailored to me

20%Half Yearly

Research by Aptumo 2019 7

Page 8: Aptumo | The Secrets of Better Billing UK · Customers should be able to fully understand their water bill so they are aware of how much they have to pay and when. However, our findings

Multi-utility bills – customer perceptions

Many consumers would welcome having their everyday utilities – water, gas and electricity, provided by a single

company and charged via a single bill. Only 14% of people in our survey said they wouldn’t consider having just one

supplier for these three essential services. Interestingly, consumer preference for a multi-utility supplier declines

somewhat with age.

More than half (56%) of billpayers said they would consider a single supplier if it reduced their bills. This is up from

48% in 2016 when we asked the same question as part of our Retaining Customers in a World of Choice research.

And, whilst multi-utility supply across water and energy is not currently a real-world scenario, who knows what the

future might hold.

Only time will tell where the market is going – but it’s clear that, at its core, any move would have to deliver on

cheaper, simpler bills, efficient processes and great service to avoid driving customer dissatisfaction across the

board. And, with 14% of consumers stating they would not consider consolidating water, electricity and gas under

one provider despite the benefits that could be available, there will clearly continue to be space in any future open

market for niche sector specialists.

Research by Aptumo 2019 8

If it was possible for one company to bill you for your

water, gas and electricity, what would your feelings

towards this be? (select one)

I’d consider it if

I would receive

a better service

through it

10%

I wouldn’t

consider just

having one

provider

14%

I’d consider it

because of

the ease of

having just

one bill

20%

0%

10%

20%

30%

40%

50%

60%

I’d consider it if I

could reduce my

bills through doing

it

56%

18-24 25-34 35-44 45-54 55+

91% 96% 91% 85% 79%

9% 4% 9% 15% 21%

I would consider it

I wouldn’t consider

Page 9: Aptumo | The Secrets of Better Billing UK · Customers should be able to fully understand their water bill so they are aware of how much they have to pay and when. However, our findings

A call for greater transparency

There is significant interest amongst billpayers to understand more about where their bill money goes, and how water

companies spend it. Almost two-thirds (65%) of customers stated that they would be interested in seeing this

information, with customers in younger age bands most interested.

Verbatim comments indicate general curiosity; the desire to better understand why bills are ‘high’; concern over water

conservation; and a mistrust of the sector and the companies that operate within it.

Concern for the future of our world is growing. Many consumers want suppliers to be more responsible and ethical.

Water companies have an opportunity to move beyond being just an essential services provider – to become a pillar of

the community that “does the right thing” and plays a key role in helping to solve environmental issues.

But, given that many consumers admit they don’t read their bill - or simply scan it – there’s a risk that this type of

messaging won’t be effectively conveyed via a bill. Water companies should therefore look to share this information with

customers in different ways; engaging with the communities they serve and showing that they are more than a faceless

organisation.

For those that didn’t want to know how their bill money is spent (35%), key themes of apathy and time constraints

emerged, highlighting once again how important it is that companies tailor the way they communicate with their

customers.

YES

NO

65%

35%

18-24 25-34 35-44 45-54 55+

74% 75% 68% 64% 60%

26% 25% 32% 36% 40%

Interested

Not Interested

Research by Aptumo 2019 9

Thinking about your water bill, are you interested in

seeing information on your bill about where your

money goes/how your supplier uses it? (select one)

Page 10: Aptumo | The Secrets of Better Billing UK · Customers should be able to fully understand their water bill so they are aware of how much they have to pay and when. However, our findings

A call for greater transparency…

Research by Aptumo 2019 10

“I would be

curious about how

much is going

towards things

like bonuses,

wages compared

to things like the

environment.”

“I like to see

what cost is

going towards

service

improvements.”

“I think it would

be great for

building trust

between the

company and

the customer.”

“It would be

interesting to see

if the water

company uses the

money to prevent

leaks and save

water for dryer

periods.”

“Because these

companies are ripping

off customers. Water

went up 4.6% this year

and then they had the

audacity to ask for more

money to send to

foreign countries for

their water.”

“Would it make

any difference

if I objected to

them wasting

the cost of it?”

“I am not

interested how the

provider spends

the money

because it is not

useful information

for me, my bill will

be not cheaper.”

“I think the bill

should just tell you

how much you need

to pay. If you want

other information

you can find it

elsewhere.”

“Because there

always seem to be

problems with water,

so I would like to

know what they are

doing about it and

how my payment is

used.”

“I have no

information to

compare it to how

other suppliers are

spending money,

so it’s of limited

meaning.”

“I am only

interested in the

amount which I

owe and trust

utility companies

to spend money

wisely.”

Page 11: Aptumo | The Secrets of Better Billing UK · Customers should be able to fully understand their water bill so they are aware of how much they have to pay and when. However, our findings

Just another number

Ofwat’s emerging future strategy states that “companies should have customers at their heart. This involves

them, not Ofwat, owning the relationship with customers. It involves them taking an inclusive approach to

understanding the different customers they serve, engaging directly and regularly with them, and ensuring that

their decision-making is well-informed by customer priorities, interests and changing expectations.”

However our survey makes it strikingly obvious that – as it stands – true customer engagement is lacking across

the board. More than half of people think their supplier treats them as just another number; a disappointing

finding.

Moreover, only 12% of billpayers said they feel they are actively engaged with their supplier and just 20% think

their supplier understands their needs.

This indicates just how far water companies have to go to truly engage customers. It also shows that there is a

huge opportunity to create closer relationships with customers; using segmentation to drive more tailored

services and experiences to better meet individual needs.

Of course, this needs robust software that can support water companies to deepen their customer understanding

and empower the use of data and AI to better serve their needs. Too often, legacy software prevents companies

from cost-effectively implementing real change that adds value to customers.

With customer expectations – and Ofwat requirements - continuing to grow, and technology opening up new

opportunities, being more proactive around communication and customer engagement is crucial to build

relationships and truly place customers at the heart.

When it comes to your water bill, which of the

following do you believe? (select all that apply)

I think my

supplier

understands my

needs

20%

I don’t really care

about what my

supplier does

outside of

billing me properly

18%

I feel like my

supplier just

treats me as

another

number

51%

0%

10%

20%

30%

40%

50%

60%

I feel like I am

actively

engaged with

my supplier

12%

11Research by Aptumo 2019

Page 12: Aptumo | The Secrets of Better Billing UK · Customers should be able to fully understand their water bill so they are aware of how much they have to pay and when. However, our findings

Expectations around personalisation are low

In many sectors, personalised communication is something in which billpayers will be well-versed. Facebook, for

example, uses artificial intelligence-driven technology to deliver tailored advertising. eCommerce brands, meanwhile,

provide individual product recommendations, based on previous choices and an understanding of customers’ potential

future needs. It’s something that is increasingly expected, but our research shows that personalisation is still lacking in

the UK water sector. 48% of respondents said they believe that their bill is tailored to them.

However, deeper analysis of individual responses highlighted a limited understanding of what a tailored bill really is and

could be. Many simply stated that their bill was bespoke because it was addressed to the right person or delivered to

the correct address. This highlights low customer expectations and therefore provides an opportunity for water

companies to surprise and delight their customers.

For example, matching messages to customer segments such as those in circumstances of vulnerability, or more likely

to fall into debt; tailoring language and the level of information to suit different customers; and driving tailored behaviour

change such as e-billing or consumption reduction.

12

Thinking of your water bill, do you feel it is

tailored to your needs? (select one)

“It explains the

breakdown just for me of

what I'm being charged

for, and it tailors a

monthly payment just for

me. There's not much

more they can really do

is there?”“I can see

usage, unit

charge and if

actual

readings were

taken.”

“It seems to

be directed

to me

personally.”

“I know the

cost per

month and

how the water

and sewage is

proportioned.”

“It gives all

details

relevant to me

and my

usage.”

Research by Aptumo 2019

YES 48%NO 52%

Page 13: Aptumo | The Secrets of Better Billing UK · Customers should be able to fully understand their water bill so they are aware of how much they have to pay and when. However, our findings

One in five make contact

Around one in five (18%) consumers we surveyed had the need to contact their water

supplier about a water bill in the last year. The key reasons for this were around billing

inaccuracies, wanting to understand a high bill, needing additional payment support and

changing account details.

Water companies can look to reduce these unwanted contacts (from the consumer’s

perspective) through taking a more proactive approach to billing processes, for example by

contacting a customer pre-bill if the bill amount looks unusually high or by taking steps to

predict which consumers may struggle to pay their bills, and offering support before being

asked.

Interestingly, the survey also highlighted that customers were far more likely to have

contacted their energy provider than their water supplier regarding a bill – almost one third

of those surveyed had had to contact their energy provider. This was due in the main to

meter reading concerns and as a result of issues created by tariff complexity.

Should water suppliers make moves to introduce more tariff choice in the future -

something that was a theme across some PR19 business plans - there are clear learnings

from the energy market; ensure tariffs are clear, simple and transparent to reduce

customer queries.

Research by Aptumo 2019 13

In the last 12 months, have you had to contact your supplier about

a water bill? (select one)

“Something

wasn’t right on

my bill.”

“I couldn’t afford

to pay my bill.”

“I couldn’t

understand

something on

my bill.”

“My bill seemed

unusually high

and I wanted to

understand

why.”

“I needed to

change some

personal details

on my account.”

YES 18% NO 82%

Key Themes

Page 14: Aptumo | The Secrets of Better Billing UK · Customers should be able to fully understand their water bill so they are aware of how much they have to pay and when. However, our findings

Billing - what’s going wrong?

Almost 8% of people have received an inaccurate water bill: a worrying figure. Assuming

that one person deals with the water bill in each household, this equates to around

2.5million households that have received an inaccurate bill in the past 12 months alone.

A similar number of customers have received a bill after vacating their property. Clearly

notifying a water supplier is not something that’s always front-of-mind when moving house.

Suppliers could therefore do more to proactively communicate the importance of this.

One in seven survey respondents said they had received a higher-than-expected bill

without warning. This is an area which is simple to fix with the right tools and technology.

It’s something that water companies should be taking full advantage of in order to meet

Ofwat’s emerging strategy – that “new techniques, technologies and business models are

essential to increase productivity and meet strategic challenges in the most cost-effective

way.”

Sophisticated software can help water companies to spot issues – such as significant

changes in consumption and potential leaks. This means the supplier can be more

proactive with its service; contacting the customer to investigate the problem, rather than

automatically sending an incorrect bill.

Research by Aptumo 2019 14

A higher than expected bill

without warning 15%

A bill I didn’t understand 13%

9%Being on a tariff where I’m paying

more than necessary

0% 5% 10% 15% 20% 25%

An inaccurate bill 8%

Bills continuing after

vacating a property7%

Being unclear which tariff I’m on 17%

Contact from my provider reminding me

a bill will soon be due26%

A bill has helped me to get a

better deal or save me money11%

Support if I was unable to pay a

bill (before I had to ask for it)11%

A warning per-bill of a higher

than expected bill6%

3%I’ve refused to pay a bill due to

issues with my account or service

Thinking about your water bill, which of the following have you

experienced in the last 12 months? (select all that apply)

Page 15: Aptumo | The Secrets of Better Billing UK · Customers should be able to fully understand their water bill so they are aware of how much they have to pay and when. However, our findings

How do suppliers respond to issues?

Getting it right first time is vitally important for the water sector. It’s a key measure in C-MeX,

and a driver for customer satisfaction. So, finding ways to reduce unwanted customer

contact should be high on every water company’s agenda.

However, our research has highlighted a range of negative experiences for customers when

it comes to resolution of issues. Just 16% said that their provider was keen to listen and

quickly correct any problems – with almost a third of customers neutral or unhappy about

the way that their provider deals with billing issues.

26% of consumers we surveyed had a negative experience when facing an issue with their

bill; 9% found it was hard to get their supplier to listen to them, 7% felt that their supplier

didn’t want to take responsibility for their error, and a further 10% were either unhappy with

how their supplier deals with billing, or felt that their supplier made it difficult for them to get

in touch.

Clearly, despite an increased focus on better service, consumers continue to face

frustrations when contacting providers about water bills. Ensuring customer service teams

are empowered and well-equipped to deal with billing concerns is crucial to ensure

consumers can easily access the support and help they need. This includes making sure

that employees are able to access a ‘single view’ of the customer in systems; with all the

history and information they need at hand to be able to resolve the customer’s problem and

get it right first time.

Research by Aptumo 2019 15

I am happy with how suppliers

deal with billing24%

I am neutral about how

suppliers deal with billing26%

18%It can take some time, but eventually

problems are resolved

0% 5% 10% 15% 20% 25%

Thinking of your water bill, what is the typical response you get

when issues arise with bills? (select all that apply)

Suppliers quickly accept blame if

they have made a mistake5%

Suppliers offer a wide range of ways

for me to contact them 10%

Suppliers are keen to listen and

quickly correct any problems16%

It is hard to get suppliers to listen or

correct issues that have occurred9%

Suppliers seem to assume I am mistaken and

just want to get paid what they have billed7%

Suppliers seem to make it difficult

for me to contact them5%

I am unhappy with how

suppliers deal with billing5%

5%Suppliers are initially sceptical, but will put problems

right after they have been explained in detail

Page 16: Aptumo | The Secrets of Better Billing UK · Customers should be able to fully understand their water bill so they are aware of how much they have to pay and when. However, our findings

An omni-channel approach to customer contact

When it comes to water bill issues, telephone is the preferred contact channel for almost half (49%) of

billpayers. This is followed by the convenience and cost-effective nature of email (26%) and online live

chat services (16%).

The preference for direct human contact via telephone is perhaps not surprising, given that bills are

related to an individual’s finances and therefore can be an emotive subject. It’s also often the case that

these conversations are complex and so people prefer to explain issues to a real-life person, rather than

their query disappearing into a perceived digital vacuum.

Clearly, the human touch is still a hugely valuable part of customer contact. But suppliers must not

neglect the development of other communication methods; the figures highlighted here demonstrate the

importance of a consistent omni-channel experience.

Moving forward, service delivered via digital channels will be under increased sector scrutiny, with C-MeX

examining customer satisfaction in relation to contacts across multiple channels, including at least four

digital channels. Water companies will no doubt be looking to ensure that customers receive a consistent

and quality experience no matter the channel they choose.

Research by Aptumo 2019 16

If you had an issue about your water bill, which method would you

prefer to use to contact your supplier? (select all that apply)

Face-to-face

Telephone

App

49%

2%

26%Email

Text

Web chat / live chat

Social media

Written letter

Voice activated assistant

(e.g. Alexa)

16%

1%

1%

1%

1%

0% 5% 10% 15% 20% 25% 30%

3%

50%40%

Page 17: Aptumo | The Secrets of Better Billing UK · Customers should be able to fully understand their water bill so they are aware of how much they have to pay and when. However, our findings

Implications of billing issues

Households are currently unable to switch water supplier, and so billing dissatisfaction will not

impact upon loyalty or supplier choice in the same way as it might for example in the energy

market.

However, when asked whether they would consider switching following a billing issue if the

option was on the table, 36% of billpayers stated they would consider doing so. A further 11%

of customers said they would definitely switch supplier if they experienced billing issues.

Customers are understandably sensitive to billing issues. In fact, the latest Institute of

Customer Service UK Customer Satisfaction Index highlighted billing as the number one

customer satisfaction detractor in the water sector.

As it stands, it may be that many billing frustrations currently go unnoticed, with customers

choosing not to raise their frustrations with their supplier. However, the new customer

experience survey (as part of C-MeX) may change this, and uncover billing dissatisfaction

which in turn could impact negatively on water company scores and rankings.

Research by Aptumo 2019 17

How would billing issues affect your relationship with your

supplier? (select one)

Issues do annoy

me, but do not

affect my brand

loyalty/supplier

choice

21%

Issues

wouldn’t affect

my attitude

towards my

supplier

26%

0%

5%

10%

15%

20%

25%

11%

I would definitely

switch supplier if I

could

30%

35%

I would

consider

switching

supplier if I

could

36%

Page 18: Aptumo | The Secrets of Better Billing UK · Customers should be able to fully understand their water bill so they are aware of how much they have to pay and when. However, our findings

Spotlight on affordability

With water an essential service, Ofwat has understandably placed a strong focus on

affordability across the sector. Currently, around three million UK water customers struggle

to pay their bills – so there is a clear need to better support those struggling to pay their

water bills.

Concerningly, our research found that currently this isn’t always the case. Of those

respondents who had not been able to pay their bill, only 19% said their supplier was

understanding, with 10% even saying their provider was unpleasant. Many customers also

highlighted that the provision of financial support – via structures such as a payment

holiday or payment plan – were lacking.

The sector has an opportunity here to up its game and make a real difference to struggling

customers. This relies on moving from a reactive to a more proactive approach, working

harder to identify struggling customers before they fall into arrears and providing sensitive

and proactive communication and help before customers themselves feel the need to

make contact.

Investing in intelligent software that uses customer segmentation, and predictive

technology to help identify these customers, could help water company teams to turn

information into real insight; enabling them to better support customers and make a real

difference to their lives.

Research by Aptumo 2019 18

My supplier worked with me to

arrange a payment plan32%

0% 5% 10% 15% 20%

If you have ever been in a position where you haven’t been able to afford a bill,

what was your experience with your supplier? (select all that apply)

My supplier was understanding 19%

21%My supplier offered me a

payment holiday

My supplier contacted me to ask if I

needed support with paying my bill19%

My supplier was inflexible 17%

10%My supplier was unpleasant

My supplier or a debt collection

agency chased me for the money6%

My supplier placed me on a

more affordable tariff17%

25% 30% 35%

I didn’t tell my supplier 9%

Page 19: Aptumo | The Secrets of Better Billing UK · Customers should be able to fully understand their water bill so they are aware of how much they have to pay and when. However, our findings

Reducing bills and water demand

The decision to base bills on metered consumption or an unmetered rateable value is a key element of

control that most water customers have over their supply. Currently around half of the households in

England and Wales are charged via a water meter, but there are controversial calls for this to become

compulsory to help save water.

Our research highlighted a clear customer perception that metered bills offer a better deal. Two in five

(40%) bill payers we surveyed said they believe this method of billing provides more value for money, in

comparison to just 21% of people who think the same of a bill based on a rateable value.

Dual billing – by which customers can see their flat rate water bill vs. their actual metered usage – and

pay for the lowest figure, has been outlined as a possibility by water companies for the future. Our

research shows that there is a significant appetite for this, as many customers may remain reticent to

have a water meter installed until it’s been proven that it will save them money (and not based on an

estimated calculation).

These findings are encouraging in terms of both bill affordability and the wider water conservation

agenda, with new initiatives such as dual billing setting out to make a real difference.

Research by Aptumo 2019 19

Thinking specifically about water usage and how it applies to your

bills, which of the following do you believe? (select one)

I think a metered bill

provides a better deal

I think an unmetered

bill provides a better

deal

I would like to see a

metered and unmetered

bill side by side, then be

able to choose which I

pay

21%40%

0%

10%

20%

30%

40%

50%

38%

Page 20: Aptumo | The Secrets of Better Billing UK · Customers should be able to fully understand their water bill so they are aware of how much they have to pay and when. However, our findings

What can the water sector learn from the SMART rollout

The energy market is in the midst of a smart meter transition, with Ofgem expecting suppliers to

offer all properties a smart meter by 2020. The sector has to date fallen short of installation

targets, casting doubt on both the demand and efficacy of the devices.

Our research highlights that, amongst those who already have an energy smart meter, more than

one in 10 don’t look at them and only 5% have used them to actually change their consumption

behaviour. Is there therefore a missing link between the perceived benefits of smart meters and

how consumers actually use them?

With water consumption per head in the UK one of the highest in Europe, water efficiency

programmes are a current priority across the water sector. So, what can be learnt from the energy

market smart meter rollout?

Are smart meters the answer to change water consumption behaviour? If so, it’s clear that regular

reminders and tailored communications are needed to ensure that customers both know how to

use them and are aware of the benefits they can bring. This could help ensure the novelty of the

device and its customer display don’t quickly wear off.

Furthermore, it may be that there are alternative solutions to this challenge that are more likely to

change behaviours. For example, an app that sends out frequent reminders and alerts could

prove as effective, or a tiered consumption approach (where prices rise rapidly once a

household’s consumption increases above the average) which is common across the USA.

Research by Aptumo 2019

Thinking about your energy supply, which of the below statements

best reflects your situation?

(Please answer only if you have a smart meter installed).

I sometimes

use my smart

meter in-home

display to

monitor my

energy usage

(weekly)

21%

I rarely use my

smart meter in-

home display to

monitor my

energy usage

(monthly)

15%

I regularly use

my smart

meter in-home

display to

monitor my

energy usage

(daily)

39%

0%

10%

20%

30%

40%

50%

14%

I never look at my

smart meter in-

home display

20

I have made

changes to my

consumption

behaviour due to

the intelligence my

smart meter in-

home display has

given me

5%

Page 21: Aptumo | The Secrets of Better Billing UK · Customers should be able to fully understand their water bill so they are aware of how much they have to pay and when. However, our findings

Moving from apathy to delight

Please rate your billing experiences with your current water

supplier from 1 to 10? (select one)

Research by Aptumo 2019

0

50

100

150

200

250

300

0 1 2 3 4 5 6 7 8 9 10

Rating

Num

ber

of custo

mers

21

Survey respondents rated their water billing experiences as 7.5/10 on

average. This highlights a largely passive relationship with water bills, billing

processes and experience, with most bill payers scoring their experience

between 5 to 8 out of 10.

There is clear scope for water companies to further improve the billing

journey – striving to delight customers rather than settling for contentment.

As new technologies and forward-looking companies drive improvements

across all aspects of customer service - including billing - those companies

that choose not to invest may see their ratings continue to fall as consumers

increasingly compare their water billing experiences against the very best

service experiences they receive from other service providers.

With an NPS measure a likely element of C-MeX, it will be interesting to see

both initial scores and also how they improve over time.

Page 22: Aptumo | The Secrets of Better Billing UK · Customers should be able to fully understand their water bill so they are aware of how much they have to pay and when. However, our findings

Key takeaways

Take steps to become

more digitally

enabled. Offer your

customers choice in

how they receive and

pay for their water

bills.

Be more transparent.

Many customers have

questions over where

their money goes and

how it is being spent.

Ensure your systems

and people are ready for

better billing.

Empower your people to

deliver great service

that delights your

customers.

More than a number.

Tailored bills are a big

customer engagement

opportunity; educate

your customers on the

‘art of what’s truly

possible’.

Research by Aptumo 2019 22

Be more transparent.

Many customers want

to know more about

where their money

goes and how it is

being spent.

Page 23: Aptumo | The Secrets of Better Billing UK · Customers should be able to fully understand their water bill so they are aware of how much they have to pay and when. However, our findings

Key takeaways

Be there for those who

need support.

Water is an essential

service, and this is a

key part of a water

company’s service

commitment.

Omni-channel customer

service is a must.

Offer customers easy

to use and convenient

channels to reduce

reliance on telephony and

service costs.

Research by Aptumo 2019

Billing and customer

satisfaction are

connected.

Improving customer

billing experiences will

provide ROI through

enhanced customer

satisfaction and higher

C-MeX scores.

23

Page 24: Aptumo | The Secrets of Better Billing UK · Customers should be able to fully understand their water bill so they are aware of how much they have to pay and when. However, our findings

POWERED BY ECHO MANAGED SERVICES - The creator of the UK’s market leading water billing software, RapidXtra.

+44(0)845 12 12 122

[email protected] | [email protected]

www.aptumo.com | www.echo-ms.com